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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (129408)	12/10/2000 2:05:25 PM
From: tejek	Read Replies (1) \| Respond to of 1570331

RE:"First I don't remember when the tax cut was implemented" Elimination of Cap Gains on the sale of a primary residence... Jim, That was four years ago and goes into effect only when you reinvest in a primary residence. That might lead to some housing inflation and there has been significant appreciation in some markets where job growth has been significant and/or housing production has been restricted. But I would still contend that that the change in the real estate capital gains law was at best a secondary reason for the Fed's concern over inflation. It was the pressure on wages in tight labor markets coupled with oil prices creeping up that prompted the fear of inflation with the Feds. BTW, even with the jump in unemployment last month, the pressure on wages continues. However I think the Feds will decide there are enough slowing economic signals to offset this one measure and will change their bias this month. ted